Salary Increment clause in Contract Hiring

Dear Members,

I am preparing a contract between us and our client for a contract hiring. The nature of the contract is that we will provide a resource to the client for 2 years, and during these two years, we will manage the payroll of the resource. I need help in drafting a clause for the below-mentioned points: How is the salary increment managed after 1 year? How do I draft this in my contract with the client and with the resource?

The client will send the resource to our location for training in India. How shall I draft this in the contract, and what amount should be specified?

Looking forward to help as I am a new joiner and fresher.

Thanks, Ann
Location: Bengaluru, India

Incorporating a clear and comprehensive salary increment clause in your contract hiring agreement is crucial to avoid any misunderstandings or disputes in the future. Here's how you can manage the salary increment after 1 year in your contract with both the client and the resource:

Drafting Salary Increment Clause for the Contract with the Client:

1. Clearly outline the terms of the salary increment, specifying the timing and conditions for the increase.
2. Include a provision that states how the increment will be calculated, whether it will be based on performance evaluations, market rates, or a fixed percentage.
3. Mention any limitations or constraints on the increment, such as a cap on the maximum percentage increase.
4. Define the communication process for the salary increment, detailing how and when the client will be notified of any changes.
5. Ensure that both parties agree to the terms and conditions regarding the salary increment to avoid any discrepancies in the future.

Drafting Salary Increment Clause for the Contract with the Resource:

1. Communicate transparently with the resource about the salary increment policy and how it will be managed after 1 year of service.
2. Specify the criteria for eligibility for a salary increment, such as performance appraisal results, completion of training programs, or meeting specific targets.
3. Detail the procedure for requesting a salary increment and the timeline for reviewing and approving such requests.
4. Clearly state the timeline for the implementation of the increment and how it will reflect in the resource's paycheck.
5. Address any questions or concerns the resource may have regarding the salary increment process to ensure clarity and understanding.

Training Provision in the Contract:

1. Include a section in the contract that details the client's responsibility for sending the resource to your location for training in India.
2. Specify the duration and nature of the training program, including any specific skills or knowledge to be covered during the training.
3. Outline the costs associated with the training, such as travel expenses, accommodation, training fees, and any other related expenses.
4. Agree on the reimbursement process for these expenses, whether the client will directly cover the costs or reimburse the provider.
5. Ensure that the training provision aligns with the overall contract terms and conditions to avoid any discrepancies or conflicts.

By incorporating these detailed clauses in your contract, you can ensure a smooth and transparent process for managing the salary increment after 1 year and arranging training for the resource, benefiting both parties involved.